Norman Smith
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George Osborne plans new spending cuts 'to fund schools'

Chancellor George Osborne will set out a fresh spending squeeze in Wednesday's autumn statement, to fund new schools, science and transport schemes.

Most government departments will be asked to save an extra 1% next year and a further 2% the following year.

This will release £5bn to be spent on capital projects, sources suggest.

  • 04 Dec 2012